Weekly round-up: Volatile Chinese steel futures weigh down global billets sentiment

The global billets market remained less active this week amid volatile Chinese steel futures which resulted in bearish market sentiments. According to data maintained with SteelMint, China’s SHFE rebar futures contract for Jan’22 delivery closed on 29 Oct’21, at RMB 4,646/t ($726/t), witnessing a significant decline of RMB 254/t ($40/t), w-o-w.

Market highlights

• Indian billets export sentiments down: The Indian billet exports market continued to remain silent following the sliding Chinese steel futures. This resulted in the absence of firm bids. An Indian PSU had floated a tender for 20,000 t of billets (90x90mm, C20MMn Gr. A), 30,000 t of steel blooms (150x150mm, 3SP/4SP grade) with 26 Oct’21 as the due date. As per market sources, the tender has been cancelled perhaps on less active participation.
• SE Asia’s imported billets market silent: The South East Asian imported billets market remained bearish, influenced by the volatile Shanghai Futures Exchange (SHFE) rebar prices. SteelMint’s bi-weekly assessment of imported billets offers from South East Asia currently stand unchanged at $670/tonne (t), CFR Manila, down by $20/t w-o-w.
• Vietnam’s billets export offers drop: Vietnam’s billets exports market remained less active this week. According to SteelMint sources, the country’s BF-route offers are at $680-690/t, FOB, a w-o-w drop of around $25/t.
• Thailand’s billet price indications down: Indicative imported billet offers into the country are hovering at $680/t CFR from various origins, down by around $40/t, w-o-w. Thailand witnessed a sharp 81% m-o-m decline in its steel billets import volumes in Sept’21. The volumes stood at 0.06 mn t in Sept’21 as against 0.30 mn t in Aug’21. However, the volumes saw a 10% y-o-y rise in Jan-Sept’21 to 2.46 mn t.
• Iran’s billets exports market awaits outcome of new tender: The Iranian billets export market seems muted as no fresh deals have been concluded recently after the sharp drop in Chinese rebar futures prices. Iran’s leading mill, KSC, has floated a tender for 40,000 t of billets and 40,000 t of slabs for Dec’21 shipments which are due towards the end of this week. Iranian mills were looking for $640-645/t FOB levels for billets exports, but the market is awaiting the tender outcome.
• China’s billet prices fall towards weekend: Steel billet prices in China’s Tangshan witnessed a fall of RMB 90/t ($14/t), w-o-w. Domestic billet prices stood at RMB 4,900/t ($766/t) towards the weekend, inclusive of 13% VAT.